hold there a second. you have to realize that you also need an amp if you want to play electric.
so, I say
guitar: ibanez GRX20 - $150
amp: line 6 spider II 15W combo - $160
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total ------------------------------------ $310

keep in mind, you'll also need a strap, tuner, picks, and a cable.. just get some inexpensive ones, no more then $20 for a tuner, or $15 for a strap, or $20 for a cable. picks shouldn't be more then $1

all in all, that should get you out of the store spending under $400, and give you some quality gear that you won't "outgrow" for quite a while. I own an ibanez GRX40, which is very similar to the GRX20, and it's a very good guitar for it's price! very versatile guitar too.. and I have the line 6 spider II 30W, which is the exaxt same as the 15W, just a little bigger and louder, and it's amazing! it's the best bang for the buck out there! hope this helps! let us know what you end up getting!